Day 4: Purchase Command Centre
Key terms and concepts
• Credit purchase: a purchase made on credit terms; that is, where the buyer receives goods or services and agrees to pay for them at a later date on the supplier’s terms.
• Trade creditor: a person or business to which the business owes money for purchases made on credit. Also, the name of the account used to record the amount payable.
Introduction and overview
Day 4 introduces you to the Purchase Command Centre (see figure 4.1, overleaf). In this area, purchases are processed on an accruals basis against trade creditors; accounts payable are monitored and paid for; and remittance advices are issued. Today we will look at the Purchases Linked Accounts and the various invoice types and ...